Shadow chancellor John McDonnell reveals proposals for supervisory boards, a pay ratio limit of 20:1 and delisting firms that fail to tackle climate change.
Shadow chancellor John McDonnell. Image: Marc Ayres/Shutterstock
The UK’s general election campaign turned its focus on corporate governance this week, as the Labour Party announced its proposals for reform.
Shadow chancellor John McDonnell gave a speech listing a host of governance changes Labour plans if it wins when the nation goes to the polls on 12 December. Some of the policies have already been announced. Others are new and will take the business sector by surprise.
First is a rewrite of the Companies Act 2006 “so that directors have a duty to promote the long-term interests of employees, customers, the environment and the wider public”.
This responds to Labour’s conclusion that the
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Climate change has placed a premium on moving to sustainable business models and a low-carbon economy. The task will need “positivity of purpose“ and “informed assessment“ of climate risks, writes Tom Delay of the Carbon Trust.
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